TMI Blog2000 (11) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowing the interest, which was originally allowed by the Assessing Officer. Income computed after the order of the ld. CIT(A) was Rs. 29,31,29,935, on which an aggregate demand of Rs. 18,97,38,983 was raised. The demand on account of interest tinder section 234B included in the said demand amounts to Rs. 5,46,50,640 and towards tax is Rs. 13,50,88,343. As against the said demand, an aggregate amount of Rs. 5,70,49,119 stood paid and the balance demand for which the stay has been sought comes to Rs. 13,26,89,866. 3. On the date of hearing, ld. counsel for the applicant-assessee submitted that the assessee is facing acute liquidity problem inasmuch as the cost of gas, which is the most vital input in the production of its business, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee, that power to grant stay is inherent power of the appellate authority and it was not necessary for them to approach the Id. CIT seeking stay in the instant case. 4. In reply, ld. Sr. Deptl. Representative opposed the stay application filed by the applicant-assessee on the ground that remedies have not been exhausted by the assessee and Id. CIT has not been approached. Therefore, assessee's stay application should not be entertained. It was further argued by Id. Sr. DR that stay should not be granted in view of the decision of the Hon'ble Supreme Court in the case of Asstt. CCE v. Dunlop India Ltd [1985] 154 ITR 172 and Sri Balaji Trading Co. v. Dy. CTO [1989] 175 ITR 428 (Mad.). It was vehemently contended by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f may lead to public mischief, grave irreparable private injury or shake a citizen's faith in the impartiality of public administration, the court may well be justified in granting interim relief against public authority.' Balance of convenience is also in favour of granting stay to the applicant, as approximately 3096 of total demand stood already paid and in view of out of turn hearing of the appeal and furnishing of security by the applicant as discussed later on in this order. Interest of revenue is also protected by the offer to deposit title deeds of immovable property as referred to above. Business and revenue have to co-exist and their interests are interdependent. It will be too harsh to ignore that this is a case where the entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned income, say, twice or more. While arriving at this decision, Hon'ble Allahabad High Court relied upon the Board Circular No. 334, dated 3-4-1982, which also reiterates the stand of the Board canvassed in Instruction No. 96 in the matter of stay of demand. It is not out of place to mention that the said Circular follows the contents of Instruction No. 96, dated 21-8-1969, relied upon by the Hon'ble Rajasthan High Court in the case cited supra, which, in turn, was based upon the observation of the then Dy. Prime Minister on the floor of the Parliament, which is part of the said Instruction and Circular. All these decisions as stated earlier are based upon CBDT Instruction and Circular only which have to be followed respectfully, more par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that even after Hon'ble Supreme Court's decision in Dunlop India Ltd.'s case, Hon'ble High Court in WA Nos. 1791 and 1792 of 1987 granted stay on the strength of deposit of title deeds. Such are the facts also in the instant case as mentioned later on in this order. 9. In so far as the contention of the revenue that Id. CIT was not approached and, therefore, remedies have not been exhausted, we wish to refer to the decision of the Hon'ble Allahabad High Court in the case of Tin Mfg. Co. of India v. CIT [1995] 212 ITR 451, wherein the Hon'ble High Court has held that the power of the appellate authority to stay the recovery of the demand of dues which are subject matter of appeal is independent of the provisions of sub-section (6) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the material placed on record and also after applying the law laid down by the Hon'ble High Courts and Hon'ble Supreme Court, applicant-assessee has made out a case for staying the balance demand. Therefore, we do not have any hesitation in granting stay of the demand of the balance amount of Rs. 13,26,89,866 as sought by the assessee-applicant till the disposal of the present appeal with the following conditions: 1. The registry is directed to post the appeal for "out of turn' hearing on 21-12-2000. 2. That assessee shall not seek any adjournment in relation to the healing of the present case whenever it is fixed for hearing before Tribunal and in case adjournment is sought, the stay granted shall stand vacated automatically ..... X X X X Extracts X X X X X X X X Extracts X X X X
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